Warm winter knocks pounds 92m off BG profits
Friday 15 May 1998
BG, which was split off from the British Gas trading arm Centrica a year ago, said operating profits dipped by 6 per cent to pounds 552m in the January- March period.
Transco, its pipeline arm, also felt the effects of the 13 per cent price cut imposed by the regulator Ofgas the previous autumn. This sliced pounds 140m from profits but BG said the reduction was partially offset by a pounds 45m fall in depreciation charges and pounds 57m of cost savings.
Staff levels at Transco fell by 432 to 15,452 at the end of March. Overall Transco's operating profits fell by pounds 62m to pounds 465m.
However, BG's exploration and production business made a strong contribution, posting a 57 per cent increase in operating profits to pounds 63m on the back of a 48 per cent rise in production volumes.
Despite a near 20 per cent fall in oil and gas prices on the previous year, operating profit per barrel was up by 6 per cent as BG's drive to cut production costs began to pay dividends.
The warm weather in February, when temperatures rose into the mid 60s Fahrenheit, took its toll on domestic gas consumption. But the actual volume of gas transported during the quarter was the same as 1997 because of the increased demand from large industrial users.
- 1 Apple has installed security backdoors on 600m iPhones and iPads, claims security researcher
- 2 UK pirates will get four warning letters a year
- 4 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 5 Israel-Gaza conflict: Deadly flechette shells 'used by Israeli military in Gaza Strip’
Malaysia Airlines flight MH17 crash: 'Nine Britons, 23 Americans and 80 children' feared dead after Boeing passenger jet is 'shot down' near Ukraine-Russia border
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
£850 - £950 per day: Orgtel: Programme Director - Conduct Risk - Banking - £85...
£45000 - £50000 Per Annum + excellent benefits: Clearwater People Solutions Lt...
£250 - £300 per day + competitive: Orgtel: Finance Manager - Accountant - Bank...
£100000 - £120000 per annum + BONUS + BENEFITS: Harrington Starr: A leading fi...